1. Seventh Regional 3R Forum 2-4 November 2016
Greening SMEs towards Resource Efficiency :Experience of India
K D Bhardwaj
Director, National Productivity Council, India

2. Make in India : Role of MSMEs
Vibrant and dynamic sector
More than 46 million units
More than 6000 products (traditional to hi-tech)
More than 100 million jobs
38 % GDP contribution
40 % contribution to exports from the country
45 % contribution to manufacturing output

3. Zero Effect Zero Defect: Role of MSMEs
"Let's think about making our product which has 'zero defect'….. and 'zero effect' so that the manufacturing does not have an adverse effect on our environment“
- Hon'ble Prime Minister Shri Narendra Modi

4. Zero Effect Zero Defect: Role of MSMEs
The MSMEs will be assessed & rated on defined enabler & outcome parameters on operational level indicators. The organisational level indicators are useful pointers towards implementing a ZED Maturity Assessment Model at the operational level. These indicators may include:
Manufacturing capabilities
Design capabilities
Quality/Environment/Safety assurance systems
People development and engagement systems
Standardization and measurement systems for quality and environment
Learning and improvement systems
Legal compliances (hygiene factor)

5. Zero Effect Zero Defect for MSMEs
The Zero Effect Zero Defect model is applicable for all sectors of manufacturing and services industries.
It will focus on MSMEs and small businesses.
It will address the quality and ecological needs of domestic and overseas customers, society, employees, partners, regulators, and investors.

6. Zero Effect Zero Defect for MSMEs
Zero Effect Zero Defect is an Integrated and holistic approach that will account for
3Rs,
Waste management
Quality,
Productivity,
Energy efficiency,
Pollution mitigation,
Financial status,
Human resource
Technological aspects

7. Zero Effect Zero Defect for MSMEs
It includes:
Quality planning,
Product and process designing,
Optimum processes,
Efficient resource management,
Effective outsources activities
Equal emphasis on the elimination of impact on the environment through various stages of process and maintenance activities, post production (disposal after use) and outcome of environment performance.
Overall, the net result is sustainable development.

8. Zero Effect Zero Defect Process Flow

9. Smart Cities Mission
December 31, 2018

10. Clean Technology Initiative for MSMEs
Demonstration Projects for Development of Cleaner Technologies
Creation of Database for Clean Technologies
Development of Clean Technology Park
Capacity Building Programs for Adoption of Clean Technologies

11. National Manufacturing Competitiveness Program for MSMEs
NMCP focuses on
Technology and quality upgrades to sensitize MSMEs
Use of renewable energy,
Energy-efficient technologies and reduction in GHG emissions.
The major activities planned under this program include initiatives such as “Capacity Building of MSME Clusters for Energy Efficiency/Clean Development Interventions”, “Implementation of Energy-efficient Technologies in MSME Sector

12. National Manufacturing Competitiveness Program for MSMEs
The National Manufacturing Policy of India stresses on three strategic paths
Mainstreaming and promoting green business,
Protecting natural resources and
Addressing clean innovative technology

13. National Manufacturing Competitiveness Program for MSMEs
Government of India aims to increase share of Manufacturing in GDP from 14 % to 25 %.
National Manufacturing Policy established.
National Manufacturing Competitiveness Programme (NMCP) developed for SMEs.
NMCP focuses on improving Productivity, Quality, ICT applications, IPR, Design capability etc of SMEs.
Lean Manufacturing Competitiveness Programme is one of the schemes of NMCP.
LMCS was launched in July 2009 on pilot basis in 100 clusters.
LMCS has been up-scaled for 500 more clusters
NPC is entrusted with the task of Monitoring and Implementation Agency.

14. Lean Manufacturing Competitiveness Programme

15. Waste Minimization Circles

16. Waste Minimization Circles
No. of circles established
158
No. of WM Options generated
1000 +
No. of WM options implemented
400 +
Investments by SME units
> Rs 8.5 Crores
Savings
> Rs. 5.0 Crores p.a.
Environmental Benefits achieved
Reduction in water consumption
5-35%
Reduction in electricity consumption
5-20%
Reduction in fossil fuel consumption
3-15%
Reduction in raw material use
2-20%
Reduction in waste water generation
5-30%
Reduction in Air Emissions (GHG)
5-10%
Reduction in solid waste generation
Yield improvement
1-5%

17. Material Flow Cost Accounting for MSMEs
FOCUS OF MFCA
MFCA focuses on material loss (REDUCE)
Profit is hidden in material loss
MFCA finds out the hidden profit
Rs.
MFCA
National Productivity Council

18. Material Flow Cost Accounting for MSMEs
Cost Elements
Material: Input　Value　of　Material　
Energy: Input　Value　of　Energy
System: Labor, Depreciation　etc.,
Disposal: Waste Management Cost

19. Material Flow Cost Accounting for MSMEs

20. Material Flow Cost Accounting for MSMEs
Name of Model Company in Gujarat where MFCA was implemented
Investment
(Rs.)
Annual Monetary Savings
Simple Payback
Period
M/s Somany Ceramics Ltd.
2,00,000/-
35,00,000/-
Immediate
M/s Sainest Tubes Pvt. Ltd.
4,95,000/-
2,09,43,924/-
09 days
M/s Bhagwati Spherocast Pvt. Ltd.
1,00,00,000/-
1,74,17,496/-
About 1Year
M/s Baroda Molds and Dies
2,00,00,000/-
2,47,00,000/-

21. Let noble thoughts come to us from all sides. - Rig Veda